Sherwin-Williams's Earnings Beat Last Year's by 17%
Sherwin-Williams (NYS: SHW) reported earnings on July 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Sherwin-Williams missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew.
Margins increased across the board.
Sherwin-Williams logged revenue of $2.71 billion. The 14 analysts polled by S&P Capital IQ expected to see revenue of $2.78 billion on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $2.57 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.54. The 18 earnings estimates compiled by S&P Capital IQ averaged $2.57 per share. Non-GAAP EPS of $2.54 for Q2 were 17% higher than the prior-year quarter's $2.17 per share. GAAP EPS of $2.46 for Q2 were 13% higher than the prior-year quarter's $2.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.5%, 80 basis points better than the prior-year quarter. Operating margin was 14.6%, 150 basis points better than the prior-year quarter. Net margin was 9.5%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.03 billion. On the bottom line, the average EPS estimate is $2.71.
Next year's average estimate for revenue is $10.54 billion. The average EPS estimate is $7.93.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 456 members out of 509 rating the stock outperform, and 53 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 184 give Sherwin-Williams a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sherwin-Williams is hold, with an average price target of $186.93.
Looking for alternatives to Sherwin-Williams? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Sherwin-Williams to My Watchlist.
The article Sherwin-Williams's Earnings Beat Last Year's by 17% originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Sherwin-Williams. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.